Gusher Oil Company has a working interest in a property. In addition to the 1/5 royalty, Gusher agreed to pay the royalty owner a minimum royalty of \($400\) per month. Gas production on the lease began in the third month after the lease contract was signed. Total sales revenue during the third month and the next two months was \($6,000\) each month.

The severance tax rate was 10%. Give the revenue and minimum royalty entries for the first five months, assuming Gusher takes the responsibility of distributing taxes and royalty and assuming:

a. The minimum royalty payments were not recoverable

b. The minimum royalty payments were recoverable